Dum-Dums Lollipop Says It’s Losing Millions From Amazon Seller Scam

There are lollipops flying all over the Amazon, and it looks like we’re going to be suckers.

Amazon hasn’t been able to stop a circle of sellers drop-shipping products from Sam’s Club to consumers — which is against Amazon’s policy — makers of dum-dums. told BloombergSaying that this is likely to cost the company “millions”.

“It turned out to be a tsunami that we can’t control,” Michelle Owens, e-commerce leader at Spangler Candy Company, which makes dum-dums, told the outlet.

What is drop-shipping?

Drop-shipping is a process where people can make money, often from online tutorials learning how to ship an item from a retailer to a consumer, using Amazon, and whatever profit you can get from the outlet. wrote. you Should not drop-ship on AmazonBut, as Owens argues, there are too many people doing it to stop him for the platform.

“An entire cottage industry is encouraging people to sell their own business on Amazon and start drop-shipping from other retailers,” Owens told Bloomberg.

drop shipping lollipops

But, in the Lollipop case, there is a specific incentive, the outlet wrote. sam’s club list a 500 count of dum-dum Online for $15. spangler sells a $26. 400 pack on Amazon for,

Essentially, sellers, conveniently and for free, Bloomberg wrote, list a 500-count of the dum-dum on Amazon for a dollar less ($25) than the price of Spangler. When someone places an order, the seller goes to Sam’s Club, buys a $15 dum-dum, and sends it to the customer who bought it for $25, with Amazon making a profit on the $6 sale after the fee.

entrepreneur found it at least one 500-count of Dum-Dums sold from a seller named Brand: Store – 383 For $25 (vague names are usually part of this, Bloomberg wrote) by searching for “dum dums 500”.

tsunami of vendors

It is a well organized plan. Owens said he used to report to vendors, but it has become more unbearable over the past six months, possibly driven by people who are working from home and looking for easy, online side-hustle.

Inevitably, Owens told the outlet, that by the time he complained about them, new ones had surfaced.

He estimated that the scam has cost “millions of dollars in lost business and legal fees,” the outlet wrote. “Amazon is too big for anyone to listen,” Owens told Bloomberg. “If you really catch someone, they’ll say, ‘I don’t know what to tell you. Even if it’s violating our policy, there’s nothing we can do.'”

Bloomberg also spoke to two vendors participating in the Lollipop plans, who largely dodged questions. One person, Ali Haider, who teaches people to dropship (but said he never encouraged people to do lollipops), said that even though it’s against Amazon policy, it’s too simple.

“You can do it from anywhere in the world,” he told Bloomberg. “Following this model is not a problem.”

An Amazon spokesperson said, “We do not allow sellers to ‘drop ship’ from other retailers, and we have a long-standing policy prohibiting this behavior. We will detect, investigate, and prevent violations of this policy.” To implement various data and monitor signals.” An emailed statement.

Sam’s Club pointed it out drop shipping policy, which says that drop-shipping resellers are people who list their products on a third party site and are only allowed to ship to 10 addresses for free. “Our merchandise is solely for our members who pay the membership fee,” it adds.